"If you’re looking to pivot away from China, while the HK/China business mostly in $1113 is throwing off these IRR numbers, it doesn’t take long before you need to shift cash from $1113 to $0001 through re-entering JVs. " ?
CK Assets (then called CK Properties) threw off >75bn FCF in FY16+17. Redeploying in HK/China is off the table if they want to pivot away, and if you can't find attractive M&A in global properties to spend that much cash on, imo the simplest solution they had was to just go beyond properties; and buy assets from CKH.
A great 👍 article, thanks!
What do you mean by:
"If you’re looking to pivot away from China, while the HK/China business mostly in $1113 is throwing off these IRR numbers, it doesn’t take long before you need to shift cash from $1113 to $0001 through re-entering JVs. " ?
CK Assets (then called CK Properties) threw off >75bn FCF in FY16+17. Redeploying in HK/China is off the table if they want to pivot away, and if you can't find attractive M&A in global properties to spend that much cash on, imo the simplest solution they had was to just go beyond properties; and buy assets from CKH.